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Why as a consumer should you be conserned if your credit rating falls?
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The consumer should not spend more than what percent of their take home pay each month on credit purchases?
Ideally, a consumer should not use credit to make purchases that the consumer would otherwise not afford. The consumer should aim to pay off all credit balances at the end of the month. Technically, the aim should be to spend 0% on credit purchases.
What are the best ways to rebuild your credit rating?
In order to repair bad credit one should first of all obtain a credit card. The way that you use this credit card will help to illustrate your trustworthiness and help increase your credit rating. You should not send in multiple applications for credit cards and should not use cards which advertise their willingness to accept those with bad credit.
Would closing a credit card damage my credit score?
Yes closing a credit card can damage your credit score. But as long as everything else is good it should not affect you credit rating to much. Look for tips to keep a good credit card rating.
Details about credit rating?
A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.
What happens to your credit rating when you file bankruptcy?
Credit rating plummets when filing for bankruptcy. Bankruptcy should be the last resort and one should try everything to not go bankrupt - keep saving as much as possible.
What would a person have to do to improve their credit rating when they have no credit at all?
To improve a credit rating with no credit at all is to find a reliable source of revolving credit. A merchant or credit card that reports to the major creditors monthly. Many credit cards offer this and it should be disclosed before you try to be approved.
Where can one find a consumer credit reporting company?
You can find a consumer credit reporting company by asking the local bank and they should have the correct contacts and information to help you out with what you need.
Where can I get instant credit cards for bad credit?
It may be possible to get a credit card with bad credit, but the terms will be unfavorable. You should work at rehabilitating your credit rating before applying for credit cards.
Can my credit rating be affected if my father defaulted on credit card payments and I was once on the account?
You are a separate, legal entity from your father, your credit rating should not be affected by your father's credit history. It is however possible that you may have been mixed up with you father is you live at the same address and have the same or similar names. It should be possible to check this out by asking for your credit history statement.
Should you cancel inactive credit cards?
Yep, other wise you might have to continue paying fees and having an unused credit card lowers your credit rating.
Why should you strive to maintain a good credit rating?
If you have a good credit rating, then lenders (such as banks) will be more willing to lend you money. It is possible that at some time you will wish to borrow money, for example, to buy a house.
Which debts should be paid off first?
For consumer debts, credit cards. Highest interest.
